Kraft hits back at Cadbury claims

Cadbury suitor Kraft has hit back at the Dairy Milk maker's bid defence

Cadbury suitor Kraft has hit back at the Dairy Milk maker's bid defence by claiming that a merger of the two firms would deliver more value "than Cadbury could achieve on its own".

The UK firm accused the Oreos and Philadelphia maker of trying to buy it "on the cheap" as it set out a robust defence against the hostile £10 billion takeover offer.

Cadbury upped its long-term performance targets and urged investors not to let Kraft "steal your company with its derisory offer". Kraft is also facing opposition from workers and unions keen not to see the deal go through, with an employee protest being staged.

But Kraft stood by its deal as the January 5 deadline for shareholder acceptance draws near.

"Cadbury's defence document only reinforces our belief that there is a compelling strategic and financial rationale to combining these two companies and that doing so would be in the best interest of both companies' shareholders."

Kraft, which also announced US competition clearance for the proposed deal, raised doubts over Cadbury's ability to meet its new guidance.

The takeover target outlined new long-term aims to deliver revenues growth of between 5% and 7% a year and improved profit margins.

"Cadbury is asking its shareholders to put their faith in possible future value creation based on a set of long-term targets, never before achieved by Cadbury and subject to significant risk and uncertainty," said Kraft.

Cadbury was thrust into the bid spotlight in September when it said it had rejected a cash-and-shares merger with Kraft valuing the business at £10.2 billion.